IRS Rule Could Keep Working-Class Families From Affordable Coverage

US residents with employer-based private healt...

US residents with employer-based private health insurance, with self insurance, with Medicare or Medicaid or military health care and uninsured in Million; U.S. Census bureau: Income, Poverty, and Health Insurance Coverage in the United States: 2007 (Photo credit: Wikipedia)

IRS building on Constitution Avenue in Washing...

IRS building on Constitution Avenue in Washington, D.C.. (Photo credit: Wikipedia)

Seal of the United States Internal Revenue Ser...

Seal of the United States Internal Revenue Service. The design is the same as the Treasury seal with an IRS inscription. (Photo credit: Wikipedia)

Topics: Health Reform, Insurance, Uninsured, Medicaid, Health Costs

Aug 13, 2012

An IRS rule could mean some working-class families may not be able to afford employer-sponsored insurance nor qualify for federal subsidies under the health law, leaving a key part of America uninsured. Childless adults, however, are in line for significant health insurance coverage gains under the health law’s Medicaid expansion.

The New York Times: Ambiguity In Health Law Could Make Family Coverage Too Costly For Many
The new health care law is known as the Affordable Care Act. But Democrats in Congress and advocates for low-income people say coverage may be unaffordable for millions of Americans because of a cramped reading of the law by the administration and by the Internal Revenue Service in particular. Under rules proposed by the service, some working-class families would be unable to afford family coverage offered by their employers, and yet they would not qualify for subsidies provided by the law (Pear, 8/11).

The Hill: Report: Medicaid Expansion Would Help Childless Adults
Single adults without children would benefit significantly from the Medicaid expansion in President Obama’s health care law, according to new research. The report, written by the Urban Institute and the Robert Wood Johnson Foundation, says roughly 82 percent of the people newly eligible for Medicaid do not have a dependent child (Baker, 8/10).

This is part of Kaiser Health News‘ Daily Report – a summary of health policy coverage from more than 300 news organizations. The full summary of the day’s news can be found here and you can sign up for e-mail subscriptions to the Daily Report here. In addition, our staff of reporters and correspondents file original stories each day, which you can find on our home page.


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